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Obama Returns to Topic of Economic Recovery

President Obama talking about the economy and mortgage refinancing with Valerie and Paul Keller at their home in Reno, Nev.Credit
Luke Sharrett for The New York Times

RENO, Nev. — After unexpectedly endorsing same-sex marriage and injecting a volatile social issue into the 2012 race, President Obama returned to the topic of the economy Friday, promoting his proposals to allow more Americans to get low-interest mortgage refinancing.

His venue once again was Nevada, the state hardest hit by the housing bust four years ago, and also a swing state whose support he needs to win re-election. Last October, Mr. Obama chose Las Vegas to announce changes to an administration program that had produced disappointing results in three years; like then, he appeared here with homeowners who have benefited from the new policies.

“It’s going to take a long time for the economy to fully recover — more time than any of us would like,” Mr. Obama said as he stood with Valerie and Paul Keller in the driveway of their home, which they refinanced after hearing the president describe the changes in October — saving, they estimated, $3,000 annually in lower mortgage payments.

In time for Mr. Obama’s visit here, the administration released figures showing that nationwide, refinancing applications have increased by 50 percent since October, with the policy changes made that month accounting for about two-thirds of the additional activity.

The increases were greatest in the states hardest hit, the figures show. In Nevada, where six out of 10 homeowners owe more than their residence’s value, refinancing applications are up 237 percent; in Arizona, where nearly half of borrowers are “underwater,” refinances are up 181 percent; and in Florida, with 44 percent underwater, refinances are up 126 percent. All three states are among the most competitive battlegrounds between Mr. Obama and his presumptive Republican opponent, Mitt Romney.

Eligibility restrictions and refinancing costs had kept many Americans from taking advantage of a 2009 program the administration put in place at the height of the crisis, officials said. Mr. Obama’s moves last fall were designed to open up the program to homeowners who did not have enough equity in their properties to qualify for low-interest loans.

Those changes benefited people with mortgages backed by government-supported housing finance agencies, Fannie Mae and Freddie Mac, who had been keeping up with their mortgage payments.

Mrs. Keller, who told The Reno Gazette-Journal in an interview published on Friday that she did not necessarily support Mr. Obama, said she approached lenders in October after hearing the president’s comments in Las Vegas; in April the Kellers closed on a new mortgage. Because the Kellers were underwater — that is, their home was worth about $100,000, less than they paid for it 14 years ago and less than their $168,000 mortgage — they had not previously qualified for refinancing.

While Mr. Obama was able last fall to expand refinancing options by executive order, and more recently to similarly reduce refinancing fees, the White House said further steps to make home financing easier would require Congress to act on legislation recently introduced by Democrats in the Senate. The housing proposals comprise one element of a five-point “to-do list” that Mr. Obama publicized this week to goad Republicans to pass legislation not only on housing finance but on small business and veterans.

According to the administration, the proposed changes would remove additional barriers so more borrowers whose homes have lost value in the housing crisis could get new mortgages, for example by waiving a requirement for costly new home appraisals. They would also provide incentives for lenders to compete for homeowners’ business, and make several million more people eligible for refinancing by expanding the existing three-year-old program to those who do not have mortgages backed by Fannie Mae or Freddie Mac but who are current on their payments.

To encourage homeowners to rebuild their equity, Mr. Obama has also proposed that closing costs be covered for borrowers who apply their mortgage savings to their principal.

“I’m calling on Congress to give every responsible homeowner a chance to save an average of $3,000 a year by refinancing their mortgage,” he said.

The White House and the Obama campaign have been eager to promote initiatives to spur the housing market and to put more money in homeowners’ pockets, not only because the housing slump remains a drag on the economy. They also believe Mr. Romney is vulnerable on the issue, given his past statements that the housing market should be allowed to bottom out without government intervention.

A version of this article appears in print on May 12, 2012, on page A13 of the New York edition with the headline: Obama Returns to Topic Of Economic Recovery. Order Reprints|Today's Paper|Subscribe